New York Fed’s Williams calls inflation too high for too long but says it is time to gather more data

New York Federal Reserve President John Williams said on Friday that US inflation is too high and that it is essential to get back to 2%¹. He said inflation has been too high for too long⁹.

Williams also said the Fed should collect more information to determine the appropriate stance of policy¹. “This is the appropriate time to accumulate more information to help us determine,” he said, in remarks centered on how to judge price risks².

In doing so, he endorsed the US central bank’s statement saying that this is the time to collect information⁴. He paired that caution with an upbeat view of growth, describing the economy as remarkably resilient and the labor market as stable^5,6.

Why it matters to investors

Williams warned that inflation remains unacceptably high, but said there was little evidence so far that it has become entrenched³. He pointed to inflation expectations and wages as the measures that do not yet show entrenchment³.

That combination matters for the rate outlook. Williams said inflation is still above target as markets consider the possibility of further Federal Reserve tightening⁸. His emphasis on gathering data, rather than committing to a move, signals a wait-and-see posture from a senior policymaker^1,2.

His comments came as inflation has soared across the world⁷. The view that the economy is resilient⁵ while inflation is too high¹ leaves open the case for higher rates, but his call for more information⁴ puts the emphasis on evidence rather than on a preset path.

What to watch

Investors will look at the data Williams said the Fed needs. His stated goal is a return to 2% inflation¹, and his assessment of risks rests on whether expectations and wages stay anchored³. Any sign that wage growth or expectations are picking up would cut against his finding that inflation has not become entrenched³.

The labor market is a second focus. Williams described it as stable⁶, so a sharp change in hiring would test that judgment.

A third is the gap between his tone and market pricing. Markets are weighing the chance of further increases⁸, while Williams framed the present as a moment to accumulate information². How other officials describe that balance in coming speeches will show whether his data-first stance is shared across the committee⁴.